By: Staff Writer
November 14, 2025
Accounting giant KMPG in a new report on Mergers and Acquisitions (M&A) in the Latin American and Caribbean (LAC) region said that from their survey, over two thirds (63 percent) of executives in the region said that the uncertainty regarding tax policy is hindering M&A activity in the region.
The report, “Making value pathways: A roadmap for M&A in Latin America,” released earlier this week also said that 58 percent of executives say that uncertainty around global trade and tariffs are “weakening the appeal” of LAC as an investment jurisdiction.
Investors are increasingly interested in mergers and acquisitions in Latin America, despite global economic challenges. Most executives (62 percent) believe the opportunity in the region has never been greater – a 17-percentage point jump from 2023, the report also said.
The report shows that dealmakers are moving forward with confidence. In fact, 57% of executives expect to increase their M&A activity in the region through 2026. This positive outlook is especially strong among high-performing dealmakers (72%) undeterred by regional complexities.
“When you see a 17-point jump in executives who feel the opportunity in Latin America has never been greater, you know a significant shift is happening,” said Jean-Pierre Trouillot, Deal Advisory Partner, KPMG LLP (US), and Regional Advisory Leader, KPMG Americas.* “However, our findings also reveal a critical challenge: With less than half (45%) of deals achieving their desired value, it’s clear that a strategic, holistic approach is no longer optional – it’s essential. Success in this dynamic market will hinge on combining that enthusiasm with a disciplined approach from the very beginning to ensure these promising opportunities translate into tangible, long-term value.”
The 2025 “Making value pathways: A roadmap for M&A in Latin America” report builds on the 2023 study, providing insights into the region’s complex environment and equipping dealmakers with a competitive edge to navigate global volatility.
Executive confidence fuels deal-making energy: A dramatic shift in executive sentiment is poised to ignite a new wave of deal activity. With nearly two-thirds (65 percent) of business leaders now rejecting the notion that the market has “never been riskier,” this newfound confidence is directly translating into ambitious growth plans. Private equity firms are at the vanguard of this optimism, forecasting a significant increase in their average deal volume from 3.94 to 4.26 over the next two years.
Resilience is the new standard for deals: In a decisive shift, 99 percent of executives are now embedding resilience directly into their deal structures, making proactive risk management the new standard. This near-unanimous trend is a direct response to persistent due diligence challenges, with legal (37 percent), financial (35 percent), and tax (35 percent) ranked as the most difficult areas to get the necessary information.